On the application of a transportation model for revenue optimization in waste management: A case study

On the application of a transportation model for revenue optimization in waste management: A case study

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Article ID: iaor200937816
Country: Germany
Volume: 17
Issue: 1
Start Page Number: 81
End Page Number: 93
Publication Date: Mar 2009
Journal: Central European Journal of Operations Research
Authors: ,
Keywords: programming: transportation, yield management, artificial intelligence: decision support
Abstract:

This paper describes an interactive decision support system called Opti-Link which has been developed for a company operating in the area of waste and raw material management. Built around a specific transportation problem, the system is used to maximize the revenue generated by selling waste paper to paper mills. Furthermore, the dual variables of the linear program allow the planner to identify upper bounds for setting bid prices to buy waste paper from waste collection companies. First operational results indicate a significant increase in profit while at the same time the duration of the planning process could be cut by more than half.

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